How to report joint investment income

It’s common for spouses or partners to hold investment accounts or income-generating property together. But when it comes time to file your taxes, that shared income must be reported in the correct proportion, based on ownership and contribution—not simply 50-50 by default.

This matters because incorrectly splitting joint investment income can trigger reassessments, attribution rules, or overpayment of tax. Whether you own a joint GIC, rental property, or trading account, accurate reporting keeps your return aligned with CRA expectations.

What Counts as Joint Investment Income?

Joint investment income refers to any earnings from assets held in the names of more than one person. This includes:

Interest from joint bank accounts or GICs
Dividends from jointly held stocks or funds
Capital gains from the sale of jointly owned securities
Rental income from co-owned property
Business income from shared ownership of income-generating ventures

Even if the account is titled jointly, the CRA focuses on who contributed the capital used to earn the income.

How to Determine the Correct Allocation

Joint income is not always split evenly. The correct reporting depends on beneficial ownership, which considers:

Who contributed the funds used to purchase the investment
Who is entitled to the income generated
Whether contributions were gifts or loans
Who bears the risk of loss

Common allocation methods:

Spouses contributing equally: If both spouses contribute 50% of the funds, then each should report 50% of the income.
One spouse contributing all funds: If one spouse provides 100% of the capital, that spouse must report 100% of the income, unless a legal structure (like a trust or formal gift) changes that.
Parent-child accounts: The parent generally reports all income unless the child made a verifiable contribution.

Tip: If ownership percentages differ, you should document it clearly and consistently with a signed agreement or notes, especially if CRA ever audits your allocation.

Attribution Rules and Spousal Accounts

Canada’s attribution rules prevent income splitting purely for tax savings. If one spouse gifts or transfers capital to the other and investment income is generated, that income is attributed back to the gifting spouse for tax purposes.

This applies when:

One spouse earns significantly more than the other
Investments are held in the name of the lower-income spouse
The lower-income spouse did not contribute to the capital used

These rules apply to interest and dividend income, but not to capital gains in many cases.

Reporting Joint Investment Income on Your Tax Return

Here’s how to report correctly:

Split the income proportionately: Each person reports their share based on the contribution ratio, not just how the T-slip is issued.
Adjust for T-slips issued to one person: If the slip is only in one name, that person must report the full amount and deduct the co-owner’s share on line 12100 (for interest) or line 12000 (for dividends) using "Other deductions" on line 23200.
Co-owner reports their share: The second person reports their portion as regular income on their own return.

Example of Joint Investment Income Allocation

Scenario	Ownership Contribution	Who Reports the Income?
Spouses contribute 50/50 to GIC	50% each	Each reports 50% of interest income
One spouse contributes all funds	100%	Contributing spouse reports 100%, unless formal gift rules apply
Joint stock account with 70/30 split	70% one, 30% the other	Each reports income according to their ownership share
Parent-child account (child is minor)	Parent contributes all	Parent reports 100% of income

Tip: If you’re opening or restructuring joint accounts, consider who should be the true owner of each asset. This planning can simplify your taxes and avoid unintended attribution or audit issues down the road.